Suppose That Elementary Education Creates a Positive Externality

question 323

Multiple Choice

Suppose that elementary education creates a positive externality. If the government does not subsidize education, then

• A)the equilibrium quantity of education will be equal to the socially optimal quantity of education.
• B)the equilibrium quantity of education will be greater than the socially optimal quantity of education.
• C)the equilibrium quantity of education will be less than the socially optimal quantity of education.
• D)There is not enough information to answer the question.

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Definitions:

Anxiety

An emotion of stress and anxiety caused by an event whose result is not yet known.

Personality Disorder

A class of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience.

Binge-Eating Disorder

An eating disorder characterized by recurrent episodes of eating large quantities of food quickly and to the point of discomfort.

Antisocial Personality Disorder

An enduring mental disorder marked by repetitive actions that manipulate, exploit, or abuse others' rights.